HB 721 “aims to protect Virginians against rent gouging practices,” said Delegate Nadarius Clark, who introduced the bill.
If passed, HB 721 will give localities the ability to adopt anti-rent gouging provisions and an anti-rent gouging board. Notice would have to be provided and a public hearing held before a locality adopted its measures.
The bill also requires landlords to provide at least two months written notice of a rent increase.
Additionally, a rent increase couldn’t exceed the locality calculated allowance. And the allowance would be set at equal to the annual increase in the Consumer Price Index or 7%, whichever is less. An allowance would remain in place for a 12-month period.
“Changing economies, inflation, and gentrified neighborhoods have provided the environment for price-gouging on rent,” Clark told the members of the Counties, Cities, and Towns Subcommittee.
He noted that purchasing a home is out of reach for many Virginians, and as renters, people are facing increases from 20% to over 40%, in some cases.
Renters speak in support
A number of Hispanic Richmond residents attended the subcommittee meeting, and speaking through a translator, told their personal experiences.
Ilsa said she lives in Southwood Apartments, located on Richmond’s southside.
“We understand the rent can go up, but not so exaggeratedly.” She said two years ago, her rent was $920. Now, she pays $1,210. Meanwhile, she said she’s work for a company for 7 years and her pay has only gone from $10 to $13 an hour.
“Do you think we can survive with our salaries so low with what we have to pay plus all our other costs?” she asked. “Please stop the increases,” she added.
Maria C. said she’s lived in Brookside Apartments, which is also on Richmond’s southside, for 14 years. She lives alone in a one bedroom apartment that started out at $695 and now it is $1,134. She said rent increases started in 2022, for residents in that community they range from $200 – $300.
Another woman who didn’t provide a name, said immigrants in her community don’t have enough money left for food and clothes for their children after they pay rent due to the increases.
“It’s not fair that as immigrants we’re being charged this increase or that we’re being charged two months rent for deposit instead of one month,” she said. Immigrants deserve to be treated equally, she also told the delegates.
Yugonda Sample-Jones of Newport News, is founder and president EmPower All. She outlined her experience saying she had a landlord imposed several increases that raised her rent from $900 to $1350 within 6 months because he got in legal trouble and needed the money for fines.
Not a new bill, but some new parts
Clark noted that a version of this bill has been presented in the General Assembly for a number of years. Numerous changes have been made in the current version, including adding exemptions, such as an exemption on new construction less than 10 years old to encourage economic development.
The exemption for single-family homes was replaced with an exemption for small landlords owning four units or less. Clark explained that’s because private equity firms are buying up large numbers of single family homes and the regulations should apply to them.
The bill allows the anti-rent gouging boards that localities establish to develop and implement rules for exemptions from the rent increase limits.
HB 721 also allows a locality to establish a civil penalty for failure to comply with the requirements set out in its ordinance.
In addition the renters, there was a list of supporters of the bill including representatives on behalf of the Virginia Poverty Law Center, Legal Aid Justice Center, Loudoun County, and Arlington County.
The only person to express opposition was John Musso on behalf of Arlington Chamber of Commerce. He didn’t state any reasoning.
With a 4-3 vote, the CC&T subcommittee voted to refer the bill to the Committee for
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